Public Storage (PSA.PI) stock analysis

P/E above its 5-year median

Public Storage's P/E of 35.9 is above its own 5-year median of 28.7.

P/E above the industry

Public Storage's P/E of 35.9 is above the Miscellaneous Investing median of 26.8.

EV/EBITDA above its 5-year median

Public Storage's EV/EBITDA of 17.2 is above its 5-year median of 15.3.

P/B above the industry

Public Storage's price-to-book of 4.15 is above the Miscellaneous Investing median of 1.21.

Trading above fair value

The share price of $342.76 is above our fair value estimate of $254.71.

Margin of safety under 20%

The price is 34.6% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 4.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -27.4% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 0.4% over the last twelve months, against a 5-year average of 5.6% a year.

Growing faster than the industry

Revenue grew 5.2% over the last twelve months; the Miscellaneous Investing median is 4.7%.

Guidance raised

Public Storage raised its 2026 Non-Same Store net operating income outlook on Oct 26, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 16.0% over the last twelve months and averaged 25.6% over five years.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Public Storage's return on equity of 16.0% is above the Miscellaneous Investing median of 3.5%.

Earnings grew over 5 years

Net income grew 5.6% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 37.8% over the last twelve months, against a 5-year average of 58.0%.

Net margin above the industry

Public Storage's net margin of 37.8% is above the Miscellaneous Investing median of 12.2%.

Low debt

Debt is 1.4% of shareholders' equity, under the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 1503% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.72; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Public Storage paid dividends worth 3.5% of the share price over the last twelve months.

Yield below Treasuries

The 3.5% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.9% or more; Public Storage yields 3.5%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.